Power Integrations, Inc.
Nasdaq: POWI
May 2014
© Copyright 2014 Power Integrations 2
Forward-Looking Statements/Non-GAAP Metrics
These slides accompany an oral presentat...
© Copyright 2014 Power Integrations 3
Secular Growth Story in Analog Semis
 Leader in energy-efficient high-voltage power...
© Copyright 2014 Power Integrations 4
 Ultra-simple power converters
• Fewer components
• Shorter design cycles
• Easier ...
© Copyright 2014 Power Integrations 5
Highly Integrated Power Converters
Replacing Legacy Technologies
Discrete power supp...
© Copyright 2014 Power Integrations 6
0
100
200
300
400
500
600
700
U.S.PatentsGranted
Relentless Innovation
609 U.S. Pate...
© Copyright 2014 Power Integrations 7
Vast Addressable Market –
Power Conversion Is Needed Everywhere
© Copyright 2014 Power Integrations 8
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
• ...
© Copyright 2014 Power Integrations 9
Leading Transition to IC-Based Power Supplies
Linear Transformers
1970 1994
Discrete...
© Copyright 2014 Power Integrations 10
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
•...
© Copyright 2014 Power Integrations 11
Recognized Leader in Clean Technology
 Member of clean-tech stock indices
• The Cl...
© Copyright 2014 Power Integrations 12
Energy Specs Continue to Tighten
 U.S. Dept. of Energy tightens federal
standards ...
© Copyright 2014 Power Integrations 13
“Zero” Series Zeroes Out Standby Waste
 CAPZero™ eliminates waste
from X-cap bleed...
© Copyright 2014 Power Integrations 14
Energy Vampire vs. LinkZero™
© Copyright 2014 Power Integrations 15
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
•...
© Copyright 2014 Power Integrations 16
Well-Positioned in LED Lighting
 Traditional bulbs phasing out
 LEDs need efficie...
© Copyright 2014 Power Integrations 17
Long-Term Secular Growth Drivers
1. Ongoing transition to IC-based power supplies
•...
© Copyright 2014 Power Integrations 18
Rapid Charging: Emerging Trend in Mobility
 Larger batteries causing extended down...
© Copyright 2014 Power Integrations 19
Expanding Market with Mid-Power Products
0W 500W5W 50W2W 20W 200W
CAPZero™/SENZero™...
© Copyright 2014 Power Integrations 20
Radically Simplifying Mid-Power Converters
HiperPFS™ and HiperTFS™ replace up to 10...
© Copyright 2014 Power Integrations 21
More Silicon Content at Higher Power Levels
EMI Filter PFC Stage Main and Standby S...
© Copyright 2014 Power Integrations 22
More Silicon Content at Higher Power Levels
EMI Filter PFC Stage Main and Standby S...
© Copyright 2014 Power Integrations 23
Acquisition Extends Power Range Further
CONCEPT drivers reduce component count, enh...
© Copyright 2014 Power Integrations 24
Spanning the Clean-Power Ecosystem
Energy
Ecosystem
Energy
Generation
Energy
Transm...
© Copyright 2014 Power Integrations 25
Higher-Power Products Expand SAM to $2.5B
● Mobile phone chargers
● Cordless phone ...
© Copyright 2014 Power Integrations 26
Consistent Track Record of Growth
0
50
100
150
200
250
300
350
2001 2002 2003 2004 ...
© Copyright 2014 Power Integrations 27
Outperforming the Peer Group
-10%
0%
10%
20%
30%
40%
2007 2008 2009 2010 2011 2012 ...
© Copyright 2014 Power Integrations 28
Well-Diversified Revenue Mix
25%
Consumer
23%
Computer
43%
Comms
2002
2013
21%
Comm...
© Copyright 2014 Power Integrations 29
Growing Cash Flow
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010 2011 2012 2013
Ca...
© Copyright 2014 Power Integrations 30
Strong Balance Sheet
 $218M cash and investments
• Used $116M for Concept acquisit...
Power Integrations, Inc.
Nasdaq: POWI
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Transcript of "Powi investor presentation may 2014"

  1. 1. Power Integrations, Inc. Nasdaq: POWI May 2014
  2. 2. © Copyright 2014 Power Integrations 2 Forward-Looking Statements/Non-GAAP Metrics These slides accompany an oral presentation by Power Integrations, Inc., which contains forward-looking statements. Each statement relating to events that will or may occur in the future is a forward-looking statement. The Company’s actual results may differ materially from those suggested in the presentation. Information concerning factors that could cause such a difference is contained in the Company’s most recent reports on Form 10-K and 10-Q. This presentation may also contain certain non-GAAP financial information. Reconciliations of non-GAAP financial metrics to GAAP results are available at the end of this presentation and/or on the investor page of the Power Integrations website, http://investors.powerint.com (see “Historical Financials” data file).
  3. 3. © Copyright 2014 Power Integrations 3 Secular Growth Story in Analog Semis  Leader in energy-efficient high-voltage power conversion  Clean-tech enabler: efficient appliances, LED lighting, DC motor drives, renewable energy, electric transportation  Expanding market opportunity with higher-power products, rapid-charging for mobile devices  Double-digit revenue CAGR since 2001
  4. 4. © Copyright 2014 Power Integrations 4  Ultra-simple power converters • Fewer components • Shorter design cycles • Easier to manufacture • Higher reliability  BOM cost similar to discrete designs  Highly energy-efficient Comprehensive Expertise in High-Voltage
  5. 5. © Copyright 2014 Power Integrations 5 Highly Integrated Power Converters Replacing Legacy Technologies Discrete power supply: 70 components Equivalent power supply with POWI: 36 components, smaller board Linear transformer: weighs 12 oz. Adapter with POWI: weighs 2 oz.
  6. 6. © Copyright 2014 Power Integrations 6 0 100 200 300 400 500 600 700 U.S.PatentsGranted Relentless Innovation 609 U.S. Patents 492 Non-U.S. Patents at 12/31/2013
  7. 7. © Copyright 2014 Power Integrations 7 Vast Addressable Market – Power Conversion Is Needed Everywhere
  8. 8. © Copyright 2014 Power Integrations 8 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies • Integration saves labor and materials, improves reliability
  9. 9. © Copyright 2014 Power Integrations 9 Leading Transition to IC-Based Power Supplies Linear Transformers 1970 1994 Discretes 1994 Today1970 Integrated •Fairchild •Sanken •ST Micro •ON Semi •Infineon POWI •iWatt/Dialog •BCD/Diodes •Active •Leadtrend •OnBright •Fairchild •Infineon •ON Semi •ST Micro •NXP PowerSupplyUnitVolume
  10. 10. © Copyright 2014 Power Integrations 10 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies • Integration saves labor and materials, improves reliability 2. Energy-efficient electronics & appliances • Driven by standards and consumer awareness
  11. 11. © Copyright 2014 Power Integrations 11 Recognized Leader in Clean Technology  Member of clean-tech stock indices • The Cleantech Index (CTIUS) • Nasdaq Clean Edge Green Energy (CELS) • Ardour Global Index (AGIGL)  Twice named a top 20 sustainable stock by SustainableBusiness.com  ENERGY STAR® award recipient  Star of Energy Efficiency award recipient
  12. 12. © Copyright 2014 Power Integrations 12 Energy Specs Continue to Tighten  U.S. Dept. of Energy tightens federal standards for external power supplies  ENERGY STAR® “Most Efficient” label rewards top performers  New battery-charger standards in California in 2013  European standby power limitation tightened to 0.5 W in 2013  Traditional 40 W and 60 W light bulbs banned in U.S. as of 2014
  13. 13. © Copyright 2014 Power Integrations 13 “Zero” Series Zeroes Out Standby Waste  CAPZero™ eliminates waste from X-cap bleed resistors  SENZero™ disconnects sense resistors in main power supply  LinkZero™ cuts waste to 0.00 W in chargers and auxiliary power supplies
  14. 14. © Copyright 2014 Power Integrations 14 Energy Vampire vs. LinkZero™
  15. 15. © Copyright 2014 Power Integrations 15 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies • Integration saves labor and materials, improves reliability 2. Energy-efficient electronics & appliances • Driven by standards and consumer awareness 3. LED lighting • Requires low-cost, efficient, reliable power supplies
  16. 16. © Copyright 2014 Power Integrations 16 Well-Positioned in LED Lighting  Traditional bulbs phasing out  LEDs need efficient, reliable drivers  Integration brings reliability, efficiency, size advantage 2007 2008 2009 2010 2011 2012 2013 LED Lighting Revenue >20% Growth in 2013
  17. 17. © Copyright 2014 Power Integrations 17 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies • Integration saves labor and materials, improves reliability 2. Energy-efficient electronics & appliances • Driven by standards and consumer awareness 3. LED lighting • Requires low-cost, efficient, reliable power supplies 4. Expanding market opportunity • Rapid charging for mobile-device market • Higher-power products add ~$1B to addressable market
  18. 18. © Copyright 2014 Power Integrations 18 Rapid Charging: Emerging Trend in Mobility  Larger batteries causing extended downtime for charging  Qualcomm Quick Charge 2.0 cuts charge time up to 75%  POWI is lead strategic partner on the charger side  Higher dollar content than a standard charger Conventional Charging Quick Charge 2.0 Quick Charge 2.0 PMIC Charger Interface Chip + Power Conversion Chip
  19. 19. © Copyright 2014 Power Integrations 19 Expanding Market with Mid-Power Products 0W 500W5W 50W2W 20W 200W CAPZero™/SENZero™/Qspeed™ Hiper™ Family TOPSwitch™ TinySwitch™ LinkSwitch™ / LinkZero™ LinkSwitch-PL/PH / LYTSwitch™ LED Products LOW-POWER MID-POWER
  20. 20. © Copyright 2014 Power Integrations 20 Radically Simplifying Mid-Power Converters HiperPFS™ and HiperTFS™ replace up to 100 components HiperTFS + HiperPFS
  21. 21. © Copyright 2014 Power Integrations 21 More Silicon Content at Higher Power Levels EMI Filter PFC Stage Main and Standby Stage Main & Standby Controller Boost Inductor PFC Controller EMI Filter Standby Output AC Gate Drive SR Main Output TNY Before: Single IC for standby power supply
  22. 22. © Copyright 2014 Power Integrations 22 More Silicon Content at Higher Power Levels EMI Filter PFC Stage Main and Standby Stage Main & Standby Controller Boost Inductor PFC Controller EMI Filter Standby Output AC HiperPFS HiperTFS CpZ Gate Drive SnZ QSpeed SR Main Output HiperTFS™ main + standbyCapZero™ HiperPFS™ SenZero™ Qspeed™ Now: Up to five components, potential dollar content >5x higher
  23. 23. © Copyright 2014 Power Integrations 23 Acquisition Extends Power Range Further CONCEPT drivers reduce component count, enhance efficiency, reliability  Acquired CT-Concept in 2012  IGBT drivers for industrial motors, renewable energy, locomotives, DC transmission  Addressable market ~$500M; now >10% of POWI revenue  Broadens POWI opportunity in clean-power applications
  24. 24. © Copyright 2014 Power Integrations 24 Spanning the Clean-Power Ecosystem Energy Ecosystem Energy Generation Energy Transmission Energy Consumption Wind Turbines Solar Power HVDC Transmission Motor Control Hybrid Vehicles Locomotive Medical End Markets Power Semiconductors IGBT module: Transistors arranged in parallel to increase switching capacity at very high currents and high voltages Driver optimizes efficiency, operating performance and lifespan of the IGBT module IGBT ModuleDriver
  25. 25. © Copyright 2014 Power Integrations 25 Higher-Power Products Expand SAM to $2.5B ● Mobile phone chargers ● Cordless phone adapters ● Broadband modems ● VoIP phones ● Wireless routers● Desktop/server standby ● Desktop main ● Notebook adapters ● LCD monitors ● Printers ● White goods ● Air conditioners ● TV standby / TV main ● Small appliances ● Set-top boxes ● DVD players ● Game consoles ● LED general lighting ● LED street lights ● Smart meters ● Industrial control ● UPS ● Industrial motor drives ● Wind/solar inverters ● Electric trains/cars ● DC transmission Consumer Comms Computer Industrial Mid-power applications in orange High-power applications in green
  26. 26. © Copyright 2014 Power Integrations 26 Consistent Track Record of Growth 0 50 100 150 200 250 300 350 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenues ($M)
  27. 27. © Copyright 2014 Power Integrations 27 Outperforming the Peer Group -10% 0% 10% 20% 30% 40% 2007 2008 2009 2010 2011 2012 2013 CAGR Annual Revenue Growth POWI Analog Semis (SIA)
  28. 28. © Copyright 2014 Power Integrations 28 Well-Diversified Revenue Mix 25% Consumer 23% Computer 43% Comms 2002 2013 21% Comms 35% Consumer 34% Industrial 10% Computer Higher-margin industrial & consumer markets now >2/3 of revenues; cellphone chargers down from 40% to ~10%
  29. 29. © Copyright 2014 Power Integrations 29 Growing Cash Flow 0 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 2013 Cash Flow from Operations ($M) One-time tax payment
  30. 30. © Copyright 2014 Power Integrations 30 Strong Balance Sheet  $218M cash and investments • Used $116M for Concept acquisition  No debt  Quarterly dividend increased to $0.10 in Q1 2014, will rise to $0.12 in Q3 2014  $260M of repurchases since 2004 • Average price of $23 • Diluted share count down 4% since 2008 0 50 100 150 200 250 Q3'08 Q1'14 Cash and Investments ($M) 10 15 20 25 30 35 Q3'08 Q1'14 Diluted Shares Outstanding (M) At March 31, 2014
  31. 31. Power Integrations, Inc. Nasdaq: POWI
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